FxPro Q1 Execution Data Shows Improved Slippage and Re-Quote Rates

The online Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term brokerage known under the FxPro brand, based in the UK and Cyprus, through its regulated businesses, today announced the release of its execution statistics for the first quarter (Q1) of 2016, reporting positive, negative and at-quote execution data, including the percentage of re-quotes from among the trades it executed during the period.

The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

The results disclose slippage percentages and related price improvements that were either favorable, unfavorable or neutral to traders, as the price of underlying markets can change during a trade submission and cause the execution rate to vary from the requested rate, based on brokers' trade policies and execution methods. The company starting publishing these results nearly a year ago in an effort to increase transparency of its execution statistics.

Positive slippage totaled 46.93% during Q1, and made up nearly half of the results, and indicated that traders received better than expected prices nearly half of the time, whereas the percentage of negative slippage was 21.26% or just over a fifth of the totals. In addition, the company reported that 31.81% of the trades executed during Q1 were at the prices that were originally quoted, representing nearly a third of the totals.

Compared to the prior reported quarter, which was Q4 2015 as detailed by Finance Magnates at the start of 2016, the number of trades executed at a better price than requested – or positive slippage – was up 9.4% from 37.5%, whereas the negative slippage percentage decreased by 3.5% Quarter-over-Quarter (QoQ) down from 24%.

In addition, the percentage of orders that were requoted decreased to 5.01% from 5.95% compared QoQ, which reflected 2.23% of requoted price as positive, whereas the remaining 2.78% was negative or prices that were worse than requested - yet that total was better than the prior quarter which had a higher rate of negative price requotes QoQ.

Commenting in the official press release, FxPro CEO, Charalambos Psimolophitis, said: “It has been a year since we took the initiative to systematically publish our execution statistics. The purpose of this move remains twofold: to provide traders with valuable information about our standards of service, and to encourage greater transparency in the FX industry. It is pleasing to see positive developments gradually taking place, as is to observe the continuous improvement of the quality of trade execution we offer.” The company also made a parallel announcement on its blog that its all-in-one trade calculator lets clients compute the pip, swap and margin values from within the website.